Glass Fibre Roving Used for Production of Wind Grade Fabrics for Wind Mill Blades from China – Mid-Term Review Initiated on Complaint of Arvind PD Composites

[DGTR Initiation Notification (MTR Case No. 08/2019) dated 4 October 2019]

Subject: Initiation of Mid-Term Review to review the product scope of definitive Anti-Dumping duty imposed on Certain Glass Fibre and articles thereof’ originating in or exported from China PR.

1. F. No.: 7/17/2019-DGTR – Whereas vide Notification No. 15/10/2015-DGAD dated 06.07.2016 the Designated Authority (hereinafter referred to as Authority) recommended continuation of definitive anti-dumping duty imposed on imports of certain Glass fibre, including glass roving (assembled rovings (AR), direct rovings (DR)), glass chopped strands (CS), glass chopped strands mats (CSM) etc originating or exported from the Peoples Republic of China and the definitive anti- dumping duty was imposed by the Central Government vide Custom Notification No. 48/2016-Customs (ADD) dated 1^st September, 2016.

2. And Whereas Arvind PD Composites Private Limited (hereinafter also referred to as the ‘Petitioner’ or ‘Applicant’) has filed an application before the Designated Authority in accordance with the Customs Tariff Act, 1975 as amended from time to time (hereinafter referred to as the ‘Act’) and the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 as amended from time to time (hereinafter referred to as the ‘Rules’) for initiation of limited mid-term review investigation to review the product scope and exclusion of certain “Glass Fibre roving used for production of wind grade fabrics for wind mill blades” from the scope of the antidumping duty imposed on the subject goods originating in or exported from China PR hereinafter also referred to as subject country) vide Notification No. 48/2016-Customs (ADD) dated 1^st September, 2016.

Product under Consideration

3. The product on which the duty is in force under the above mentioned customs notification is “Glass fibre, including glass roving (assembled rovings (AR), direct rovings (DR)), glass chopped strands (CS), glass chopped strands mats (CSM), excluding glass wool, fibre glass wool, fibre glass insulation in wool form, glass yarn, glass woven fabrics, glass fibre fabric, glass woven rovings, chopped strands meant for thermoplastic applications, micro glass fibre with fibre diameter in the range of 0.3 to 2.5 microns, surface mat/surface veil/tissue, wet chopped strands and Cemfil (alkali resistant glass fibre for concrete reinforcement). The product defined in the Final Finding comes under the HS Code Heading 7019.

4. The applicant has filed a limited mid-term review request for exclusion of ““Glass Fibre Rovings used for production of Wind Grade Fabrics for Wind Mill Blades” falling under HS Code 70191200 from the scope of the product under consideration.

5. It has been submitted that Quality and specifications of glass fibre rovings required to produce different articles vary significantly. Different grades/specifications of Glass Fibre Roving are mainly identified by “Tex” of material (300, 600, 1200, 2400, 4800 etc), and chemical binder or sizing applied (polyester, epoxy, vinyl ester, etc). There are other characteristics like E Glass, ECR Glass, High Modulus Glass, etc, depending upon end use or application.

6. The Glass Fibre Roving of certain specific grades/specifications, as approved by the manufacturers of the wind mill blades, are used for making Glass Fabrics for producing Wind Mill Blades.

7. The specific requirements by users of Wind Grade Glass Fabric have the following unique technical/chemical testing parameters for Glass

Fiber Roving to be used for manufacture of such fabric:

Properties	Approximate Wind grade roving	Approximate Other Roving
Tensile strength, MPa	2610	1965
Tensile Modulus, GPa	81150	78790
Shear Strength, MPa	75	65

8. The present review is therefore, only for the limited purpose of investigating the need for excluding “Glass Fibre roving used for production of wind grade fabrics for wind mill blades” falling under HS Code 70191200, from the scope of the product under consideration in the original investigation.

Grounds for Review

9. The present application for mid-term review has been filed to request appropriate modification in the product covered in the anti dumping duty already levied. The grounds pleaded are as follows:

i. Domestic Industry does not produce Glass Fibre Roving required for the production of Glass Fabrics for Wind Mill Blades and attempts by the Applicants to develop vendors for this type of roving from the domestic manufacturers for supply of wind grade fabrics has failed.

ii. The glass rovings produced by the Domestic Industry have failed the fabric laminate test carried out by wind mill blade manufacturers and international laboratories. The fabrics manufactured by use of glass rovings manufactured by the domestic industry have failed in achieving the minimum tensile strength at 45⁰, compression strength, tensile modulus at 45⁰ and tensile strength at 0⁰.

iii. Domestic Industry’s production capacities and sourcing pattern has changed due to closure of manufacturing facility of M/s Owens Corning Industries (India) Pvt. Ltd. in Thimapur.

iv. The Applicant who is manufacturer of wind grade glass fabric is suffering due to non-availability of required input materials from the domestic market and are forced to import at higher costs.

Procedure

10. Having regard to the information provided by the applicant indicating circumstances necessitating a review of the measure in force, the Authority now considers that a mid-term review of the Final Findings notified vide No 15/10/2015-DGAD dated 6th July, 2016 and the definitive anti-dumping duty imposed by Customs Notification No. 48/2016-Customs (ADD) dated 1st September, 2016 limited to the scope and specification of the product under anti-dumping measures in force is appropriate, in terms of the provision of Section 9(A) of Customs Tariff (Amendment) Act 1995 read with Rule 23 supra. The Authority also notes that the applicant M/s. Arvind PD Composites Private Limited have provided sufficient positive evidence to prima facie establish the need for mid-term review. Accordingly, the Authority initiates a mid- term review of definitive Anti- Dumping Duty imposed on ‘Certain Glass Fiber and articles thereof’ originating in or exported from the Peoples Republic of China’, limited to the product scope of the said anti-dumping duty. The review covers limited aspects of Notification No. 15/10/2015-DGAD dated 6th July, 2016and the definitive anti-dumping duty imposed by Customs Notification No. 48/2016-Customs (ADD) dated 1st September, 2016.

Countries Involved

11. The country involved in the present investigations is China PR.

Period of Investigation

12. Since the petition is for limited purpose of exclusion of a certain type of product under consideration, the Authority does not propose to evaluate either the quantum of dumping and injury, therefore stipulation of a POI is not required.

Submission of information

13. The known exporters in the subject countries and their governments through their embassies in India, importers and users in India known to be concerned with the subject goods and the domestic industry are being informed separately to enable them to file all the relevant information in the form and manner prescribed within the time- limit set out below.

14. Any other interested party may also make its submissions relevant to the investigation in the form and manner prescribed within the time-limit set out below. The information/submission may be submitted to:

The Designated Authority Directorate General of Trade Remedies Ministry of Commerce & Industry Department of Commerce

Government of India

4th Floor, Jeevan Tara Building,

5, Parliament Street New Delhi-110001.

15. Any party making any confidential submission before the Authority is required to make a non-confidential version of the same available to the other parties.

Time Limit

16. Any information relating to the present investigation should be sent in writing so as to reach the Authority at the address mentioned above not later than forty days (40 days) from the date of publication of this Notification. If no information is received within the prescribed time limit or the information received is incomplete, the Authority may record its findings on the basis of the facts available on record in accordance with the AD Rules.

17. All the interested parties are hereby advised to intimate their interest (including the nature of interest) in the instant matter and file their questionnaire responses and offer their comments to the domestic industry’s application within forty days (40 days) from the date of publication of this Notification. The information must be submitted in hard copies as well as soft copies.

Submission of information on confidential basis

18. The parties making any submission (including Appendices/Annexure attached thereto), before the authority including questionnaire response, are required to file the same in two separate sets, in case "confidentiality" is claimed on any part thereof.

19. The “confidential” or “non-confidential” submissions must be clearly marked as “confidential” or “non-confidential” at the top of each page. Any submission made without such marking shall be treated as non- confidential by the Authority and the Authority shall be at liberty to allow the other interested parties to inspect such submissions. Soft copies of both the versions will also be required to be submitted, along with the hard copies, in two (2) sets of each.

20. The confidential version shall contain all information, which is by nature confidential and/or other information, which the supplier of such information claims, as confidential. The information which is claimed to be confidential by nature or the information on which confidentiality is claimed because of other reasons, the supplier of the information is required to provide a good cause statement along with the supplied information as to why such information cannot be disclosed.

21. The non-confidential version is required to be a replica of the confidential version with the confidential information preferably indexed or blanked out (in case indexation is not feasible) and summarized depending upon the information on which confidentiality is claimed. The non-confidential summary must be in sufficient detail to permit a reasonable understanding of the substance of the information furnished on confidential basis. However, in exceptional circumstances, party submitting the confidential information may indicate that such information is not susceptible to summary, and a statement of reasons why summarization is not possible, must be provided to the satisfaction of the Authority.

22. The Authority may accept or reject the request for confidentiality on examination of the nature of the information submitted. If the Authority is satisfied that the request for confidentiality is not warranted or if the supplier of the information is either unwilling to make the information public or to authorize its disclosure in generalized or summary form, it may disregard such information.

23. Any submission made without a meaningful non-confidential version thereof or without a good cause statement on the confidentiality claim shall not be taken on record by the Authority.

24. The Authority on being satisfied and accepting the need for confidentiality of the information provided, shall not disclose it to any party without specific authorization of the party providing such information.

Inspection of Public File

25. In terms of Rule 6(7) of the AD Rules, any interested party may inspect the public file containing non-confidential version of the information or evidence submitted by other interested parties.

Non-cooperation

26. In case where an interested party refuses access to, or otherwise does not provide necessary information within a reasonable period, or significantly impedes the investigation, the Authority may record its findings on the basis of the facts available to it and make such recommendations to the Central Government as deemed fit.